Activist Investor Ancora Challenges Netflix’s Acquisition of Warner Bros. Discovery
In a significant development within the media and entertainment industry, Ancora Holdings, an activist investment firm, has publicly opposed Netflix’s proposed $82.7 billion acquisition of Warner Bros. Discovery (WBD). Ancora has acquired $200 million worth of WBD shares and is advocating for an alternative bid from Paramount, citing concerns over the Netflix deal’s value, regulatory challenges, and immediate financial benefits to shareholders.
Ancora’s opposition aligns with Paramount’s recent efforts to enhance its offer for WBD. Just a day prior to Ancora’s announcement, Paramount introduced additional incentives, including a quarterly payment of $0.25 per share for each quarter the deal remains unclosed after December 31, 2026. Furthermore, Paramount committed to covering the $2.8 billion termination fee that WBD would owe Netflix if shareholders opt for Paramount’s proposal.
Despite Ancora’s relatively modest stake in WBD, the firm is actively seeking to influence other shareholders to reject Netflix’s offer. Ancora has indicated that if the WBD board does not reconsider Paramount’s proposal, it will vote against the Netflix deal and advocate for board accountability at WBD’s 2026 annual meeting.
The success of Ancora’s campaign remains uncertain, especially considering that, as of last month, over 93% of WBD shareholders had voted against Paramount’s previous offer, favoring the Netflix deal instead. However, if Ancora manages to sway even a small portion of shareholders, it could significantly alter the trajectory of the acquisition, introducing new complexities and uncertainties into the process.
